4.2 14:43 4.3 QUESTION 3 Indirect labour Management salaries (FC) Hourly wages (VC) Plant and infrastructure Rent expense (FC) Insurance (FC) Maintenance (VC) ABC Limited did a comparison of its actual spending of its manufacturing overhead costs with its forecasted spending for the 2nd quarter of 2018 and compiled the following variance report: Electricity and water (VC) Total manufacturing overheads QUESTION 4 Forecast R 135 000 1 035 000 18 000 15 000 330 000 18 000 1551 000 = Actual R ||| 140 000 1 210 000 | || || 81%1 18 000 15 500 339 000 23 000 1 745 500 Variance R 4.1 Explain the risks inherent in supply chain management and subsequently the role of internal control. END OF PAPER O 5 000 U 175 000 U 0 500 U 9 000 U 5 000 U 194 500 U Business risks may be categorised as ownership, process or behavioural risks. Provide FOUR (4) examples of process risks. The production and sales forecast was 2 000 units but 2 100 units were actually produced and sold. Explain what management should do to create an environment is which fraud is unlikely to occur and to swiftly detect it if it does occur. Explain in detail the steps that ABC Limited should take in conducting its budget variance analysis. (25 Marks) Variance % 3.70% 16.91% 0.00% 3.33% 2.72% 27.78% 12.54% (25 Marks) (12 marks) (4 marks) (9 marks) r 5 6 4.2 14:43 4.3 QUESTION 3 Indirect labour Management salaries (FC) Hourly wages (VC) Plant and infrastructure Rent expense (FC) Insurance (FC) Maintenance (VC) ABC Limited did a comparison of its actual spending of its manufacturing overhead costs with its forecasted spending for the 2nd quarter of 2018 and compiled the following variance report: Electricity and water (VC) Total manufacturing overheads QUESTION 4 Forecast R 135 000 1 035 000 18 000 15 000 330 000 18 000 1551 000 = Actual R ||| 140 000 1 210 000 | || || 81%1 18 000 15 500 339 000 23 000 1 745 500 Variance R 4.1 Explain the risks inherent in supply chain management and subsequently the role of internal control. END OF PAPER O 5 000 U 175 000 U 0 500 U 9 000 U 5 000 U 194 500 U Business risks may be categorised as ownership, process or behavioural risks. Provide FOUR (4) examples of process risks. The production and sales forecast was 2 000 units but 2 100 units were actually produced and sold. Explain what management should do to create an environment is which fraud is unlikely to occur and to swiftly detect it if it does occur. Explain in detail the steps that ABC Limited should take in conducting its budget variance analysis. (25 Marks) Variance % 3.70% 16.91% 0.00% 3.33% 2.72% 27.78% 12.54% (25 Marks) (12 marks) (4 marks) (9 marks) r 5 6
